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Market Structure University of Phoenix Introduction When a product is produced, the company that produces that particular product falls into one of four categories: pure competition, monopolistic competition, oligopoly, and monopoly. Depending on how many companies are producing a product determines what market structure the company is labeled. Each category determines how a company will use pricing and non-pricing to advance in the economy. The United States economic market is competitive with various buyers and sellers, and each company is constantly looking for ways to be better than its neighbor. The following examples of each category will show different companies and how they use pricing and non-pricing to advance to…show more content…
Though the price and investment decisions have been largely under its control, the consumers and competitive factors influenced strategies. Understanding the key variables and the relationship between them were critical to its continuation in the marketplace (University of Phoenix, 2010). The simulation provided an excellent example of prices rising and lowering. Once Quasar’s patent ran out, the door was now opened for competition to arise. No longer was Quasar the only ones using the personal computer, they were also selling the computer. Other companies would arise and now decisions had to be made. Would the price of the computer be raised and less of a focus used on marketing, or would the computer price be lowered and more money spent on advertising? Conclusion Through the 21st century, business industries continued to find ways to make their products better, prestigious, branded, and consumer alluring. The four economic market structures examined here are the answer to those desires, which contributed to the world’s economy. This paper also discussed the “Quasar Computers” simulation how the company evolved within the four structures. The understanding of each structure can assist the firm to identify potential market opportunities in differentiation, and assessing pricing and non-pricing strategies. Furthermore, the knowledge of how the consumers perceive alternatives are attributes that provides a foundation

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